The Company in a Nutshell
| Date Reviewed | 02/16/2025 |
| Company Name | Boston Pizza Royalties Income Fund |
| Symbol | BPF.UN.TO |
| Sector | Consumer Discretionary |
| Industry | Restaurants |
| Beta | 0.88 |
| PRO Rating | 2 |
| Dividend Safety | 2 |
Business Model
Boston Pizza Royalties Income Fund (the Fund) is a Canada-based open-ended trust. The Fund operates through its subsidiaries, Boston Pizza Holdings Trust, Boston Pizza Holdings GP Inc. and Boston Pizza Holdings Limited Partnership, its 80% owned subsidiary Boston Pizza GP Inc. (BPGP), and its interest in Boston Pizza Royalties Limited Partnership. BPGP is the managing general partner of Royalties LP. The Fund indirectly, through Royalties LP, acquire the trademarks and trade names owned by Boston Pizza International Inc. (BPI), including 'Boston Pizza' and other similar related items, logos and designs (collectively, the 'BP Rights') used in connection with the operation of Boston Pizza restaurants in Canada. The Company operates approximately 372 Boston Pizza Restaurants in the Royalty Pool, of which approximately 370 were operating and open for business to the public.
| Current price | 17.25 |
| ROE | 11.40 % |
| ROIC | 8.65 % |
| Shareholder Yield | 0.15 % |
| 5-Yr Total Return | 272.45 % |
| 1-Yr Total Return | 19.75 % |
| Next Earnings Date | 05-08-25 |
Latest Quarter Information
What the CEO said:
In the fourth quarter of 2024, Boston Pizza achieved its highest year-over-year growth, culminating in record franchise sales. Effective promotions played a key role in overcoming earlier macroeconomic challenges. As we move into 2025, we are closely monitoring the evolving trade landscape and its potential impact on our Canadian restaurants, adapting our strategies as needed. We are encouraged by our current momentum and remain committed to enhancing guest experiences, supporting our franchisees, and driving sustainable, long-term growth through innovation and operational excellence.
What we say:
2025-02-15, Boston Pizza Royalties Income Fund reported a good quarter performance on EPS and revenue with +16.7% and +2.9% respectively. Growth was driven by a 3.4% quarterly and 0.9% annual SRS increase, largely from menu price adjustments. Distributable Cash per Unit rose 1.4% in Q4 but declined 0.2% for the year. In 2024, the Fund raised its monthly distribution twice, totaling $0.115 per unit. While no 2025 guidance was provided, the Fund remains optimistic, focusing on guest experience and franchisee support for sustainable growth. It will also monitor trade developments and adjust its strategies to navigate potential impacts on Canadian operations.
Investment Thesis
Dividend Triangle
| 5-Yr Rev. Growth | 1.75 % |
| 5-Yr EPS Growth | 11.25 % |
| 5-Yr Div Growth | -0.30 % |
Potential Risks
| Debt/Equity | 0.30 |
| Financial Debt to EBITDA (TTM) | 1.80 |
| Current Ratio (Quarterly) | 0.70 |
| Credit Score | 89 |
Dividend Growth Perspective
| Dividend ($) | 1.38 |
| Dividend Yield Fwd | 7.95 % |
| Dividend Frequency | Monthly |
| Average 5-Yr Yield | 7.75 % |
| Payout Ratio (%) | 95.80 |
| Cash Payout Ratio (%) | 79.65 |
| DGR 1-Yr | 6.55 |
| DGR 3-Yr | 16.50 |
| DGR 5-Yr | -0.30 |
| DGR Streak | |
| Chowder Score | 7.70 |
| Next DVD PMT | 04-30-25 |
Valuation
(Data for `ddm_growth_rate_years` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
| Market Cap | 369.00 M |
| PE Ratio | 13.35 |
| Fwd PE | 10.90 |
| Price to Book Ratio | 1.30 |
| DDM Valuation | 0 |
| Average 5-Yr PE | 12.76 |
| Value Score | 83 |